Additional borrowing (further advance)

When your client needs to borrow more on their existing Nationwide mortgage, additional borrowing offers a straightforward way to access extra funds.

This allows you to support their needs while keeping their mortgage with Nationwide.

You can apply through NFI Online if your client has an existing residential mortgage with Nationwide and wishes to borrow additional funds.

If the reason for borrowing is to pay off a subsequent charge on their property, they'll need to complete this transaction directly with Nationwide.

Please see below to check they’re eligible to borrow more funds and read all the information which may be relevant to the case.

Eligibility

You can find the key eligibility criteria below:

Tick icon The property ownership type is standard
Tick icon All existing applicants names (including middle names) must be correct. You must contact Nationwide directly to update any incorrect names
Tick icon Repayment basis of the new lending is capital and interest
Tick icon The completion of your clients purchase or remortgage application (including a porting application) must be a minimum of 180 days before starting an additional borrowing application. This excludes Green Additional Borrowing page applications where you can proceed, subject to an appeal and underwriting, after the first monthly payment has been made.
Tick icon Your client pays the existing mortgage by Direct Debit
Tick icon The existing mortgage account has not got a nominal balance
Tick icon You can only submit one additional borrowing application at a time.

Cross icon No more than two applicants
Cross icon No mortgage account is more than one month in arrears
Cross icon There are no subsequent charges on the mortgaged property at the time of starting the application. This includes Help to Buy equity loans
Cross icon The property isn’t let (some exceptions apply*)

On some historic mortgage accounts you'll be unable to process additional borrowing applications. You'll see these flagged in NFI Online. Please contact us directly to discuss options.

*We'll allow applicants who are letting the property, and applying for additional borrowing, if:

they're a member of the armed forces for essential or
they're making green improvements to the security address or
the applicants are critically ill.

Borrowing reasons

The minimum additional lending amount is £10,000 for all reasons except home improvements, which has a minimum lending of £5,000.

Please see the below table for the acceptable additional borrowing reasons:

Borrowing reasons†	Max LTV	Max LTV (Second property)
Repay unsecured debts	80%	80%
Non structural home improvements	90%	85%
Structural home improvements	90%	85%
Buy a share in the freehold	90%	85%
Buy out partners interest (non borrower)	90%	85%
Buy freehold title or new extended lease	90%	85%
Buy land to extend security	90%	85%
Other personal consumption	90%	85%
Purchase land/property separate from the security (additional borrowing is not acceptable for the purpose of buying a property/land that'll then be let out)	90%	85%

† If additional borrowing is for more than one reason, the lowest LTV will apply. For any reasons outside of the above options, your client may be able to take out additional borrowing directly with us.

Mortgage Term

The minimum mortgage term for additional borrowing is two years. The maximum term is 40 years, which is subject to our lending into retirement criteria.

The term for the new lending must be at least two months shorter than the main mortgage account. This allows time for the additional borrowing application to be processed, so upon completion the additional borrowing will not exceed the main account.

If your client needs to increase their existing mortgage term(s) to enable them to proceed with an additional borrowing application, they'll need to follow the online process prior to commencing the additional borrowing application. In most cases, the term change will take place on the 1st of the following month.

If the mortgage repayment type is on an interest only or part and part basis, you'll be unable to change the term of the mortgage. If your client would like to change the repayment basis of any existing part of their mortgage, this must be done directly with Nationwide before starting any additional borrowing applications. Please note if the term change is required prior to the 1st of the following month, or it takes any applicant past their declared retirement age, the term change will need to be completed directly with Nationwide.

If your client needs to amend a further advance application, they can do this through the 'Amend case' option on NFI Online.

You won't be able to start the additional borrowing application until the term change has taken effect and the subsequent payment has been taken. If you've already started an additional borrowing application prior to the term change taking effect, you'll need to create a brand new case.

If following your clients term change, the additional borrowing application is declined for any reason, you'll be able to apply to change the mortgage term back directly with Nationwide or through the online process.

They can also read more about our additional borrowing valuations.

Overpayment reserve

Find out how an overpayment reserve can impact the LTV of your clients additional borrowing application.

Additional borrowing with rate switch This will reveal additional content

Where your client wants to complete a rate switch and apply for additional borrowing (further advance), you'll need to complete two separate applications.

Firstly you should submit the Rate Switch application, as the rate switch products available will be based on the Loan to Value (LTV) without the additional borrowing. If you submit an application for additional borrowing before a rate switch application, this may affect the LTV and products available.

We can't guarantee approval of an additional borrowing application prior to your chosen rate switch start date. This means, you would be unable to cancel the rate switch without incurring Early Repayment Charges (ERCs) if an additional borrowing application is declined and the rate switch has already gone live. You should select the rate switch start date that leaves enough time for the additional borrowing application to be underwritten.

Green additional borrowing This will reveal additional content

If your client would like to borrow more money to improve their property’s energy efficiency, a Green additional borrowing product will give them a lower initial interest rate than our standard additional borrowing products.

Bank details and Release of funds This will reveal additional content

The existing bank details held will be used to:

collect the applicant’s mortgage payments by Direct Debit
pay any cashback if the selected product includes this
pay the additional borrowing funds requested in this application, upon completion.

Once we’ve issued your applicant’s mortgage offer, our nine day reflection period will start from the date stated on your offer. Once these nine days have passed, we’ll transfer the funds to the existing bank account held.

Exception Processes This will reveal additional content

Unsecured debt This will reveal additional content

Clients intending to pay off unsecured debt, that has more than six months to run, may be asked to provide proof that the debt has been paid off in full. This is before we can proceed to offer.

Examples of acceptable proofs we may require include:

A credit card statement showing that the balance has been cleared
A document from a loan company confirming the loan has been paid off

Where you're clearing more than one unsecured debt, we’ll need proof of repayment for each sole debt. Screenshots are acceptable.

We may accept if the unsecured debt is being repaid with equity from the sale of the client’s main residence.

Contact one of our experienced advisers using Broker Chat if you need more information.

Product finder

Use our online product finder to get the right mortgage product for your clients.

Product finder

Overpayment reserve

Find out how an overpayment reserve can impact the LTV of your clients application.

Overpayment reserve

Affordability calculator

The maximum additional borrowing your client(s) can borrow before completing a DIP.

Use our affordability calculator